KINGSTONE COMPANIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 -Nature of Business and Basis of Presentation

Kingstone Companies, Inc. (referred to herein as "Kingstone" or the “Company” or, on a standalone basis for the parent company only, the “Holding Company”), operates through its wholly-owned subsidiaries, Kingstone Insurance Company ("KICO") and Kingstone America Insurance Company ("KAIC"). KICO is a New York domiciled carrier writing business through retail and wholesale agents and brokers. KICO is actively writing personal lines and livery physical damage insurance in New York, and in 2025 was the 11th largest writer of homeowners insurance in New York. Beginning in June 2026, KICO began writing homeowners coverage in California on a non-admitted basis. KICO is also licensed in the states of New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine. For the three months ended September 30, 2026 and 2025,98.4% and 98.0%, respectively, of KICO’s direct premiums written came from the New York policies. For the nine months ended September 30, 2026 and 2025,98.5% and 98.1%, respectively, of KICO’s direct premiums written came from the New York policies. The Company's wholly-owned subsidiary, Cosi Agency, Inc. (“Cosi”), is a multi-state licensed general agency. In April 2026, Cosi became licensed in California, and the Company expects to expand its underwriting operations in California during the remainder of 2026 through the policies Cosi writes.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by GAAP for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2025 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2026. The accompanying condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position and results of operations. The results of operations for the nine months ended September 30, 2026 may not be indicative of the results that may be expected for the year ending December 31, 2026.

Note 2 –Accounting Policies

Basis of Presentation

See Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for further information.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Kingstone and its wholly-owned subsidiaries: (1) KICO and its wholly-owned subsidiaries, CMIC Properties, Inc. (“Properties”) and 15 Joys Lane, LLC (“15 Joys Lane”), which together, until March 2025, owned the land and building from which KICO operated (see Note 14 - Sale of Real Estate), (2) KAIC, an insurance carrier licensed by the state of Connecticut on May 1, 2026, which started writing business in September 2026, and (3) Cosi. All inter-company account balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes the amounts included in the condensed consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates.

Accounting Changes

In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. ASU 2023-09 is effective for public companies with annual periods beginning after December 15, 2024. The Company prospectively adopted ASU 2023-09 effective

December 31, 2025, and added the required disclosures that meet the materiality thresholds to the 2025 Form 10-K. The adoption of the guidance updated disclosures but did not have an impact on the Company's results of operations.

Recent Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses("ASU 2024-03"), as amended by ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)("ASU 2025-01"). ASU 2025-01 clarifies the effective date for ASU 2024-03. ASU 2024-03 requires companies to disclose additional information and disaggregate expenses in the notes to the financial statements. ASU 2024-03 does not change the expense captions currently presented on the income statement; rather it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. ASU 2024-03 can be applied on a prospective basis; however, retrospective application is permitted. Early adoption is permitted. The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) ("ASU 2025-06"). ASU 2025-06 updates the accounting guidance for internal-use software by eliminating references to software development project stages, thereby requiring companies to start capitalizing software costs when (i) management has authorized and committed to funding the project and (ii) it is probable the project will be completed and the software will be used as intended. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, with early adoption permitted. Amendments can be applied either (i) prospectively, (ii) through a modified transition approach based on the existing projects status and whether software costs were capitalized before the date of adoption, or (iii) retrospectively. The Company is currently evaluating the impact of ASU 2025-06 on its financial condition and results of operations.

The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

Note 3 -Investments

Fixed-Maturity Securities

The amortized cost, estimated fair value, allowance for credit losses and gross unrealized gains and losses on the Company’s total available-for-sale fixed-maturity securities including short-term investments, as of September 30, 2026 and December 31, 2025 are summarized as follows:

(1)KICO places certain fixed-maturity securities in a designated custodian account to fulfill the required collateral for a sale-leaseback transaction (see Note 7 - Debt - "Equipment Financing"). As of September 30, 2026 and December 31, 2025, the amount of required collateral was approximately $2,347,000 and $3,616,000, respectively, and the estimated fair value of the eligible collateral was approximately $2,347,000 and $3,616,000, respectively.

(2)KICO has placed certain residential mortgage backed securities as eligible collateral in a designated custodian account related to its membership in the Federal Home Loan Bank of New York (“FHLBNY”) (see Note 7 – Debt – “Federal Home Loan Bank”). The eligible collateral would be pledged to FHLBNY if KICO draws an advance from the FHLBNY credit line. As of September 30, 2026 and December 31, 2025, the estimated fair value of the eligible investments was approximately $8,309,000 and $9,598,000, respectively. KICO will retain all rights regarding all securities if pledged as collateral. As of September 30, 2026 and December 31, 2025, there was no outstanding balance on the FHLBNY credit line.

A summary of the amortized cost and estimated fair value of the Company’s investments in available-for-sale fixed-maturity securities, including short-term investments by contractual maturity as of September 30, 2026 and December 31, 2025 is shown below:

The actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without penalties.

Equity Securities

The cost and estimated fair value of, and gross unrealized gains and losses on, investments in equity securities as of September 30, 2026 and December 31, 2025 are as follows:

Other Investments

The cost and estimated fair value of, and gross gains on, the Company’s other investments as of September 30, 2026 and December 31, 2025 are as follows:

Held-to-Maturity Securities

The cost or amortized cost and estimated fair value of, and unrealized gross gains and losses on, investments in held-to-maturity fixed-maturity securities as of September 30, 2026 and December 31, 2025 are summarized as follows:

1 Held-to-maturity U.S. Treasury securities are all held in trust pursuant to various states’ minimum funds requirements.

1 All held-to-maturity U.S. Treasury securities are held in trust pursuant to various states’ minimum funds requirements.

A summary of the amortized cost and estimated fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of September 30, 2026 and December 31, 2025 is shown below:

The actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without penalties.

Major categories of the Company’s net investment income are summarized as follows:

The proceeds and gross realized gains (losses) on the sale of fixed-maturity securities available-for-sale are as follows:

There wereno proceeds from the sale of fixed-maturity securities held-to-maturity for the three months and nine months ended September 30, 2026 and 2025, respectively.

There wereno proceeds from the sale of equity securities for the three months and nine months ended September 30, 2026 and 2025, respectively.

The Company’s net gains (losses) on investments are summarized as follows:

Allowance for Credit Loss

The Company reviews available-for-sale fixed-maturity securities for decreases in fair value to see if the decrease is credit related. A credit loss exists if the present value of cash flows expected to be collected is less than the amortized cost basis as the result of a credit event of the issuer such as a bankruptcy or missed interest payments, a decline in the issuer's credit rating or an expected future default. The allowance for credit losses related to available-for-sale fixed-maturity securities is the difference between the present value of cash flows expected to be collected and the amortized cost basis, limited by the amount that the fair value is less than the amortized cost basis. The Company considers all available evidence when determining whether an investment requires a credit loss write-down or allowance to be recorded, which is recognized in net income through an allowance for credit losses. Any remaining decline in fair value represents the noncredit portion of the impairment, which is recognized in other comprehensive (loss) income, net of tax. The Company intends to hold available-for-sale securities to maturity but if it is more likely than not that it will be required to sell the security before recovery of the unrealized loss, the Company will write down the security to fair value.

At September 30, 2026 and December 31, 2025, there were 384 and 125 fixed-maturity securities, respectively, that accounted for the gross unrealized losses. The Company determined that, except for the credit loss disclosed above, none of the other unrealized losses were deemed to be credit losses for its portfolio of investments for the nine months ended September 30, 2026 and 2025. Significant factors influencing the Company’s determination that unrealized losses were temporary included credit quality considerations, the magnitude of the unrealized losses in relation to each security’s cost, the nature of the investment and interest rate environment factors, and management’s intent and ability to hold the investment to maturity or for a period of time sufficient to allow for an anticipated recovery of estimated fair value to the Company’s cost basis. Therefore, the Company concluded that these securities had not incurred a credit loss and should not have an allowance for credit loss as of September 30, 2026.

The Company held available-for-sale securities with unrealized losses representing declines that were considered temporary at September 30, 2026 as follows:

The Company held available-for-sale securities with unrealized losses representing declines that were considered temporary at December 31, 2025 as follows:

Note 4 -Fair Value Measurements

The following table presents information about the Company’s investments that are measured at fair value on a recurring basis at September 30, 2026 and December 31, 2025 indicating the level of the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

The following table sets forth the Company’s investment in a hedge fund measured at Net Asset Value (“NAV”) per share as of September 30, 2026 and December 31, 2025. The Company measures this investment at fair value on a recurring basis. Fair value using NAV per share is as follows as of the dates indicated:

The hedge fund investment is generally redeemable with at least 45 days prior written notice. There were no unfunded commitments as of September 30, 2026 and December 31, 2025 The hedge fund investment is accounted for as a limited partnership by the Company. Income is earned based upon the Company’s allocated share of the partnership's changes in unrealized gains and losses to its partners, which are recorded in the condensed consolidated statements of income and comprehensive income within net (losses) gains on investments.

Note 5 -Fair Value of Financial Instruments

The estimated fair values of the Company’s held-to-maturity financial securities and cash and cash equivalents, including their fair value level as of September 30, 2026 and December 31, 2025 are as follows:

Note 6 –Property and Casualty Insurance Activity

Premiums Earned

Premiums written, ceded and earned are as follows:

Loss and Loss Adjustment Expense (LAE) Reserves

The following table provides a reconciliation of the beginning and ending balances for unpaid loss and LAE reserves:

Incurred losses and LAE are presented in the accompanying condensed consolidated statements of income and comprehensive income net of reinsurance recoveries under reinsurance contracts of $21,703,501 and $16,313,217 for the nine months ended September 30, 2026 and 2025, respectively.

Prior year incurred loss and LAE development is based upon estimates by line of business and accident year. During the nine months ended September 30, 2026, favorable development was driven primarily by better-than-expected loss emergence on property lines for accident year 2025 and liability lines for accident years 2022 through 2025. During the nine months ended September 30, 2025, the favorable development was attributable to better-than-expected loss emergence on property lines for accident years 2022 through 2024.

Loss and LAE Reserves

The reserving process for loss and LAE reserves provides for the Company’s best estimate at a particular point in time of the ultimate unpaid cost of all losses and LAE incurred, including settlement and administration of losses, and is based on facts and circumstances then known including losses that have occurred but that have not yet been reported. The process relies on standard actuarial reserving methodologies, judgments relative to estimates of ultimate claim severity and frequency, the length of time before losses will develop to their ultimate level (‘tail’ factors), and the likelihood of changes in the law or other external factors that are beyond the Company’s control. Several actuarial reserving methodologies are used to estimate required loss reserves. The process produces carried reserves set by management based upon the actuaries’ best estimate and is the cumulative combination of the best estimates made by line of business, accident year, and loss and LAE. The amount of loss and LAE reserves for individual reported claims (the “case reserve”) is determined by the claims department and changes over time as new information is gathered. Such information is critical to the review of appropriate incurred but not reported ("IBNR") reserves and includes a review of coverage applicability, comparative liability on the part of the insured, injury severity, property damage, replacement cost estimates, and any other information considered pertinent to estimating the exposure presented by the claim. The amounts of loss and LAE reserves for unreported claims and development on known claims (IBNR reserves) are determined using historical information aggregated by line of business as adjusted to current conditions. Since this process produces loss reserves set by management based upon the actuaries’ best estimate, there is no explicit or implicit provision for uncertainty in the carried loss reserves.

Due to the inherent uncertainty associated with the reserving process, the ultimate liability may differ, perhaps substantially, from the original estimate. Such estimates are regularly reviewed and updated and any resulting adjustments are included in the current period’s results. Reserves are closely monitored and are recomputed periodically using the most recent information on reported claims and a variety of statistical techniques. On at least a quarterly basis, the Company reviews by line of business existing reserves, new claims, changes to existing case reserves, and paid losses with respect to the current and prior periods. Several methods are used, varying by line of business and accident year, in order to select the estimated period-end loss reserves. These methods include the following:

Paid Loss Development – historical patterns of paid loss development are used to project future paid loss emergence in order to estimate required reserves.

Incurred Loss Development – historical patterns of incurred loss development, reflecting both paid losses and changes in case reserves, are used to project future incurred loss emergence in order to estimate required reserves.

Paid Bornhuetter-Ferguson ("BF") – an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been paid, based on historical paid loss development patterns. The estimate of required reserves assumes that the remaining unpaid portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of paid losses exists at the early stages of the claims development process.

Incurred BF - an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been reported, based on historical incurred loss development patterns. The estimate of required reserves assumes that the remaining unreported portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of reported losses exists at the early stages of the claims development process.

Incremental Claim-Based Methods– historical patterns of incremental incurred losses and paid LAE during various stages of development are reviewed and assumptions are made regarding average loss and LAE development applied to remaining claims inventory. Such methods more properly reflect changes in the speed of claims closure and the relative adequacy of case reserve levels at various stages of development. These methods may provide a more accurate estimate of IBNR for lines of business with relatively few remaining open claims but for which significant recent settlement activity has occurred.

Frequency / Severity Based Methods – historical measurements of claim frequency and average paid claim size (severity) are reviewed for more mature accident years where a majority of claims have been reported and/or closed. These historical averages are trended forward to more recent periods in order to estimate ultimate losses for newer accident years that are not yet fully developed. These methods are useful for lines of business with slow and/or volatile loss development patterns, such as liability lines where information pertaining to individual cases may not be completely known for many years. The claim frequency and severity information for older periods can then be used as reasonable measures for developing a range of estimates for more recent immature periods.

Management’s best estimate of required reserves is generally based on an average of the methods above, with appropriate weighting of methods based on the line of business and accident year being projected. In some cases, additional methods or historical data from industry sources are employed to supplement the projections derived from the methods listed above.

Three key assumptions that materially affect the estimate of loss reserves are the loss ratio estimate for the current accident year used in the BF methods, the loss development factor selections used in the loss development methods, and the loss severity assumptions used in the frequency / severity method described above. The loss ratio estimates used in the BF methods are selected after reviewing historical accident year loss ratios adjusted for rate changes, trend, and mix of business. The severity assumptions used in the frequency / severity method are determined by reviewing historical average claim severity for older more mature accident periods, trended forward to less mature accident periods.

The Company reviews the carried reserves levels on a regular basis as additional information becomes available and makes adjustments in the periods in which such adjustments are determined to be necessary. The Company is not aware of any claim trends that have emerged or that would cause future adverse development that have not already been contemplated in setting current carried reserves levels.

In New York State, lawsuits for negligence are subject to certain limitations and must be commenced within three years from the date of the accident or are otherwise barred. Accordingly, the Company’s exposure to unreported claims (“pure” IBNR) for accident dates of September 30, 2023 and prior is limited, although there remains the possibility of adverse development on reported claims (“case development” IBNR). In certain rare circumstances states have retroactively revised a statute of limitations. The Company is not aware of any such effort that would have a material impact on the Company’s results.

The following is information about incurred and paid claims development as of September 30, 2026, net of reinsurance, as well as the cumulative reported claims by accident year and total IBNR reserves as of September 30, 2026 included in the net incurred loss and allocated expense amounts. The historical information regarding incurred and paid claims development for the years ended December 31, 2017 to December 31, 2025 is presented as supplementary unaudited information.

All Lines of Business

(in thousands, except reported claims data)

All Lines of Business

(in thousands)

(Components may not sum to totals due to rounding)

Reported claim counts are measured on an occurrence or per event basis. A single claim occurrence could result in more than one loss type or claimant; however, the Company counts claims at the occurrence level as a single claim regardless of the number of claimants or claim features involved.

The reconciliation of the net incurred and paid loss development tables to the loss and LAE reserves in the condensed Consolidated Balance Sheets is as follows:

Reconciliation of the Disclosure of Incurred and Paid Loss Development

to the Liability for Loss and LAE Reserves

Reinsurance

On January 1, 2025, the Company entered into a 16% quota share reinsurance treaty for its personal lines business, which primarily consisted of homeowners’ and dwelling fire policies, covering the period from January 1, 2025 through January 1, 2026 (“2025/2026 Treaty”). Upon the expiration of the 2025/2026 Treaty on January 1, 2026, the Company entered into a new 5% quota share reinsurance treaty for its personal lines business written in all states except California covering the period from January 1, 2026 through January 1, 2027 (“2026/2027 Treaty”). For business written in California, the Company entered into a new 30% quota share reinsurance treaty covering the period from January 1, 2026 through January 1, 2027.

The Company’s excess of loss and catastrophe reinsurance treaties expired on June 30, 2026 and the Company entered into new excess of loss and catastrophe reinsurance treaties effective July 1, 2026. The new catastrophe reinsurance treaties include the second year of the $125,000,000 catastrophe bond ("Series 2025-1 Notes") issued on July 1, 2025. The Series 2025-1 Notes were priced at 4.5% and issued through a Bermuda-registered special purpose insurer, 1886 Re Ltd., providing KICO with $125,000,000 of collateralized reinsurance protection. The Series 2025-1 Notes offer multi-year protection against named storm events across New York, New Jersey, Connecticut, Massachusetts and Rhode Island on an indemnity trigger and per-occurrence basis. The Series 2025-1 Notes, which were structured and placed by AON Securities LLC, cover four annual risk periods from July 1, 2025, through June 30, 2029.

Effective January 1, 2025, the Company renewed an underlying excess of loss reinsurance treaty ("Underlying XOL Treaty") covering the period from January 1, 2025 through June 30, 2025. The treaty provided 50% reinsurance coverage for losses of $400,000 in excess of $600,000. Losses from named storms were excluded from the treaty. Effective July 1, 2025, the Underlying XOL Treaty was renewed along with the Company's excess of loss reinsurance treaty covering the period from July 1, 2025 through June 30, 2026 ("2025/2026 XOL Treaties"). Combined, the renewed 2025/2026 XOL Treaties provided 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $9,000,000 together with facultative coverage. Effective July 1, 2026, the Underlying XOL Treaty was renewed along with the Company's excess of loss reinsurance treaty covering the period from July 1, 2026 through June 30, 2027 ("2026/2027 XOL Treaties"). Combined, the renewed 2026/2027 XOL Treaties provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $11,000,000 together with facultative coverage. For the period October 1, 2024 through April 30, 2025, the Company purchased catastrophe reinsurance which provided coverage for winter storm losses to the extent of 71% of $4,500,000 in excess of $5,500,000. For the period October 15, 2025 through April 30, 2026, the Company purchased catastrophe reinsurance which provides coverage for winter storm losses to the extent of 90% of $5,000,000 in excess of $5,000,000. For the period July 1, 2026 through June 30, 2027, the Company purchased 70% of all perils coverage excluding named storm losses of $5,000,000 in excess of $5,000,000. Effective July 1, 2025, the Company purchased $435,000,000 of catastrophe reinsurance in excess of $5,000,000.. Effective July 1, 2026, the Company purchased $495,000,000 of catastrophe reinsurance in excess of $5,000,000, compared to $435,000,000 of catastrophe reinsurance in excess of $5,000,000 in the expiring treaty.

Material terms for reinsurance treaties in effect for the treaty years shown below are as follows:

(1)For personal lines, includes the addition of an automatic facultative facility allowing KICO to obtain homeowners single risk coverage up to $9,000,000 in total insured value, which covers direct losses from $3,500,000 to $9,000,000 through June 30, 2026. Effective July 1, 2026, homeowners single risk coverage was increased to $11,000,000 in total insured value, which covers direct losses from $3,500,000 to $11,000,000 through June 30, 2027.

(2)Through June 30, 2026, catastrophe coverage is limited on an annual basis totwo times the per occurrence amounts, except for one occurrence on 80% of the first layer of $5,000,000 in excess of $5,000,000, and one occurrence on 52% of the top layer of $240,000,000 in excess of $200,000,000, which is covered under the catastrophe bond. Effective July 1, 2026, catastrophe coverage is limited on an annual basis totwo times the per occurrence amounts, except for one occurrence on: (i)70% of the first layer of $5,000,000 in excess of $5,000,000 for all perils excluding named storms, and (ii),95% of the first layer of $5,000,000 in excess of $5,000,000 for named storms, and one occurrence on 45% of the layer of $275,000,000 in excess of $215,000,000, which is covered under the catastrophe bond. Duration of 168 consecutive hours for a non-named catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone. For named storms, duration beginning on the date a watch, warning, advisory, or other bulletin is first issued, continuing for a time period thereafter during which such named storm continues, regardless of its category rating or lack thereof and regardless of whether the watch, warning, advisory or other bulletin remains in effect for such named storm, and ending on the fourth calendar day following the issuance of the last watch, warning, advisory or other bulletin.

(3)For the period July 1, 2024 through June 30, 2025 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000. For the period July 1, 2025 through June 30, 2026 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000. For the period July 1, 2026 through June 30, 2027 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000 for named storms only.

(4)For the period January 1, 2024 through June 30, 2025, the Underlying XOL Treaty provides 50% reinsurance coverage for losses of $400,000 in excess of $600,000. Excludes losses from named storms. Reduces retention to $530,000 from $730,000 under the quota share treaty that expired on January 1, 2025. Retention increases to $640,000 from $530,000 under the 2025/2026 Treaty. For the period July 1, 2025 through June 30, 2026, the Underlying XOL Treaty combined with the excess of loss treaty provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $9,000,000 together with facultative coverage. For the period July 1, 2026 through June 30, 2027, the Underlying XOL Treaty combined with the excess of loss treaty provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $11,000,000 together with facultative coverage. Increased retention to $715,000 from $640,000 under the 2025/2026 Treaty, and increased retention to $825,000 under the 2026/2027 Treaty (see note 5 below).

(5)The personal lines quota share treaty (homeowners, dwelling fire and canine liability) will expire on January 1, 2027, with none of these coverages to be in effect during the period from January 1, 2027 through June 30, 2027. If and when this treaty is renewed on January 1, 2027, the personal lines quota share treaty, will be as provided for therein. Reinsurance coverage in effect from January 1, 2027 through June 30, 2027 is only for excess of loss, Underlying XOL, and catastrophe reinsurance treaties.

(6)For the 2025/2026 Treaty,6% of the 16% total of losses ceded under this treaty were excluded from a named catastrophe event. For the 2026/2027 Treaty, there is no exclusion for catastrophe events. Quota share reinsurance under the 2026/2027 treaty is 5% for personal lines business written in all states except California (for which the quota share rate is 30%).

(7)Plus losses in excess of catastrophe coverage.

(8)Effective July 1, 2025 through June 30, 2026, catastrophe coverage is 80% of the first layer of $5,000,000 in excess of $5,000,000. The remaining coverage is at 100% of $430,000,000 in excess of $10,000,000. For the period October 1, 2024 through April 30, 2025, additional catastrophe reinsurance treaty provided coverage for winter storm losses to the extent of 71% of $4,500,000 in excess of $5,500,000. For the period October 15, 2025 through April 30, 2026, an additional catastrophe reinsurance treaty provided coverage for winter storm losses to the extent of 90% of $5,000,000 in excess of $5,000,000. Retention for winter storms was $5,200,000 under the 2025/2026 Treaty from January 1, 2025 through April 30, 2025, $3,900,000 from October 15, 2025 through January 1, 2026, the expiration date of the 2025/2026 Treaty, and $5,000,000 under the 2026/2027 Treaty through April 30, 2026. Effective July 1, 2026 through June 30, 2027, catastrophe coverage is 95% of the first layer of $5,000,000 in excess of $5,000,000 for named storms,70% for all other catastrophe risks. The remaining coverage is at 100% of $490,000,000 in excess of $10,000,000.

.

The Company’s reinsurance program has been structured to enable the Company to grow its premium volume while maintaining regulatory capital and other financial ratios generally within or below the expected ranges used for regulatory oversight purposes. The reinsurance program also provides income as a result of ceding commissions earned pursuant to the quota share reinsurance contracts. The Company’s participation in reinsurance arrangements does not relieve the Company of its obligations to policyholders.

Ceding Commission Revenue

The Company earned ceding commission revenue under the 2025/2026 Treaty for the three and nine months ended September 30, 2025 based on: (i) a fixed provisional commission rate at which provisional ceding commissions were earned, and (ii) a sliding scale ("Sliding Scale") of commission rates and ultimate treaty year loss ratio on the policies reinsured under this agreement based upon which contingent ceding commissions are earned. The Sliding Scale included minimum and maximum commission rates in relation to specified ultimate loss ratios. The commission rate and contingent ceding commissions earned increase when the estimated ultimate loss ratio decreases and, conversely, the commission rate and contingent ceding commissions earned decrease when the estimated ultimate loss ratio increases.

The Company earned ceding commission revenue under the 2026/2027 Treaty for the three and nine months ended September 30, 2026 based on only a fixed provisional commission rate at which provisional ceding commissions were earned, with no provision for Sliding Scale ceding commission.

Ceding commission revenue consists of the following:

Provisional ceding commissions are settled monthly. Balances due to or from reinsurers for contingent ceding commissions on the 2025/2026 Treaty will be settled annually based on the Loss Ratio of the treaty year that ends on January 1. Balances due to or from reinsurers for Sliding Scale contingent ceding commissions on quota share treaties are settled periodically based on the Loss Ratio of each treaty year that ends on June 30 for the expired treaties (which had June 30 expiration dates) that were subject to Sliding Scale contingent commissions. The Loss Ratios from prior years’ treaties are subject to change as incurred losses from those periods develop, resulting in an increase or decrease in the commission rate and Sliding Scale contingent ceding commissions earned. As of September 30, 2026 and December 31, 2025, contingent ceding commissions receivable from reinsurers under the 2025/2026 Treaty was $2,371,463 and $1,754,316, respectively, which is recorded in other assets on the accompanying condensed consolidated balance sheets.

As of September 30, 2026 and December 31, 2025, net contingent ceding commissions payable to reinsurers under all other treaties was $724,660 and $732,480, respectively, which is recorded in reinsurance balances payable on the accompanying condensed consolidated balance sheets.

Expected Credit Losses – Uncollectible Reinsurance

The Company reviews reinsurance receivables which relate to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The Company has not recorded an allowance for uncollectible reinsurance as there is no perceived credit risk. The principal credit quality indicator used in the valuation of the allowance for reinsurance receivables is the financial strength rating of the reinsurer sourced from major rating agencies. Changes in the allowance for credit losses are presented as a component of other underwriting expenses on the condensed consolidated statements of income and comprehensive income.

Note 7 –Debt

Federal Home Loan Bank

KICO is a member of, and invested in, FHLBNY. KICO is required to maintain an investment in the capital stock of FHLBNY. Based on the redemption provisions of FHLBNY, the stock has no quoted market value and is carried at cost. At its discretion, FHLBNY may declare dividends on the stock. Management reviews the stock for impairment based on the ultimate recoverability of the cost basis in the stock. At September 30, 2026 and December 31, 2025, no impairment has been recognized. FHLBNY members have access to a variety of flexible, low cost funding through FHLBNY’s credit products, enabling members to customize advances, which are to be fully collateralized. Eligible collateral to pledge to FHLBNY includes residential and commercial mortgage-backed securities, along with U.S. Treasury and agency securities. See Note 3 – Investments for eligible collateral held in a designated custodian account available for future advances. Advances are limited to 5% of KICO’s net admitted assets under statutory insurance principles as of the previous quarter. Based on KICO's credit rating from FHLBNY, KICO can now borrow for a term of up tofive years. If KICO has sufficient available collateral (as discussed below), based on KICO’s net admitted assets, the maximum allowable advance as of September 30, 2026 and December 31, 2025 was approximately $19,604,000 and $16,873,000, respectively. The estimated fair value of available collateral as of September 30, 2026 and December 31, 2025 was approximately $8,309,000 and $9,598,000, respectively. Effective April 15, 2025, advances are limited to 91% of the amount of available collateral. Prior to April 15, 2025, advances were limited to 85% of the amount of available collateral. There wereno borrowings under this facility as of September 30, 2026 or December 31, 2025.

Debt

Debt as of September 30, 2026 and December 31, 2025 consists of the following:

2024 Notes

The Company issued the 2024 Notes in the aggregate principal amount of $14,950,000 pursuant to a debt exchange agreement (the “2024 Exchange Agreement”). Interest was payable semi-annually in arrears on June 30 and December 30 of each year at the rate of 13.75% per annum. Pursuant to the 2024 Exchange Agreement, the expiration date of the then outstanding warrants to purchase 969,525 shares of Common Stock of the Company pursuant to a 2022 debt exchange agreement ("2022 Exchange Agreement") was extended from December 30, 2025 to June 30, 2026 (all such warrants were subsequently exercised as of December 31, 2025) (see Note 8 – Stockholders’ Equity).

The 2024 Notes were redeemable, at the Company’s option, in whole or in part, at any time or in part from time to time, on and after September 12, 2024, upon not less than fifteen (15) and not more than sixty (60) days’ notice, equal to 100% of the principal amount of the 2024 Notes, plus, in each case, accrued and unpaid interest, if any, to the date of redemption (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).

The 2024 Exchange Agreement provided for mandatory and optional prepayments of principal. The Company made optional prepayments of $3,500,000 on January 28, 2025, and $2,450,000 on February 24, 2025, and, accordingly, satisfied the entire principal balance of the 2024 Notes. Unamortized debt issue costs of $174,962 related to extinguished debt were expensed at the time the 2024 Notes were extinguished and recorded as loss on extinguishment of debt in the condensed consolidated statements of income and comprehensive income within other operating expenses.

Line of Credit

On July 1, 2026, the Company entered into a revolving credit facility (the “ Credit Facility”) that permits borrowings of up to $5,000,000 in principal. Borrowings bear interest at a floating rate based on either (i) the one-month secured overnight financing rate (“SOFR”) plus 2.5% or (ii) the alternate base rate plus 2.5%, as selected in accordance with the Credit Facility. The Company is required to make monthly interest payments, with all outstanding principal due at maturity on July 1, 2028. Borrowings under the Facility are unsecured. The Credit Facility includes financial and nonfinancial covenants. As of September 30, 2026, the Company was in compliance with these covenants. The Company intends to use borrowings for general corporate purposes. The Company did not borrow under the Facility during the nine months ended September 30, 2026, andno amounts were outstanding as of that date.

Interest only payments are due monthly, and payment in full is due at maturity on July 1, 2028. Advances are unsecured.

Equipment Financing

On October 27, 2022, KICO entered into a sale-leaseback transaction, whereby KICO sold $8,096,824 of fixed assets to a bank. Under GAAP, the sale-leaseback transaction is recorded as equipment financing (“Financing”). The provisions of the Financing require KICO to pay a monthly payment of principal and interest at the rate of 5.86% per annum totaling $126,877 for a term of 60 months, which commenced on October 27, 2022. The terms of the Financing provide buyout options to KICO at the end of the 60 month term, which are as follows:

•At the end of the lease, KICO may purchase the fixed assets for a purchase price of $2,024,206, which is 25% of the original fixed asset cost of $8,096,824; or

•KICO may renew the lease for 16 months at the same rental rate, which totals $2,030,036.

A provision of the Financing requires KICO to pledge collateral for the lease obligation. As of September 30, 2026 and December 31, 2025, the amount of required collateral was approximately $2,347,000 and $3,616,000, respectively. As of September 30, 2026 and December 31, 2025, the fair value of KICO’s pledged collateral was approximately $2,347,000 and $3,616,000, respectively, in various fixed-maturity securities.

Note 8 –Stockholders’ Equity

Dividends Declared and Paid

Dividends declared and paid on Common Stock were $868,527 and $707,101 for the three months ended September 30, 2026 and 2025. respectively. Dividends declared and paid on Common Stock were $2,315,045 and $707,101 for the nine months ended September 30, 2026 and 2025, respectively. See Note 15 - Subsequent Events - "Dividend Declared."

Preferred Stock

The Board of Directors has the authority to issue shares of Preferred Stock from time to time in a series and to fix, before the issuance of each series, the number of shares in each series and the designation, liquidation preferences, conversion privileges, rights and limitations of each series. There wasno preferred stock issued and outstanding as of September 30, 2026 and December 31, 2025.

2014 Equity Participation Plan

The 2014 Equity Participation Plan (the “2014 Plan”) authorized grants of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, and stock bonuses. Through subsequent amendments, the maximum number of shares of the Company’s Common Stock authorized under the 2014 Plan was increased to 1,900,000. Non-statutory stock options granted under the 2014 Plan expire no later than ten years from the date of grant. The Board of Directors or the Compensation Committee determined the vesting provisions for awards, subject to the terms of the 2014 Plan. The 2014 Plan terminated on August 12, 2024, and no further awards may be granted under it.

2024 Equity Participation Plan

Effective August 7, 2024, the Company's stockholders approved the 2024 Equity Participation Plan (the “2024 Plan”) pursuant to which a maximum of 1,000,000 shares of Common Stock of the Company are authorized to be issued pursuant to the grant of incentive stock options, non-statutory stock options, stock appreciation rights, and stock bonus awards. Incentive stock options granted under the 2024 Plan expire no later thanten years from the date of grant (except no later than five years for a grant to a 10% stockholder). Non-statutory stock options granted under the 2024 Plan expire no later thanten years from the date of grant. The Board of Directors or the Compensation Committee determines the vesting provisions for stock awards granted under the 2024 Plan, subject to the provisions of the 2024 Plan. The 2024 Plan terminates on May 10, 2034 and no further awards may be granted under the 2024 Plan after such date.

As of September 30, 2026, there were 325,410 shares of Common Stock granted under the 2024 Plan pursuant to stock bonus awards, net of forfeitures.

Stock Options

The results of operations for the three months ended September 30, 2026 and 2025 include stock-based compensation expense for stock options totaling approximately $8,000 and $22,000, respectively, which is included in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. The results of operations for the nine months ended September 30, 2026 and 2025 include stock-based compensation expense for stock options totaling approximately $25,000 and $67,000, respectively, which is included in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. Stock-based compensation expense related to stock options for the nine months ended September 30, 2026 is net of estimated forfeitures of approximately 24%.

No options were granted during the nine months ended September 30, 2026 and 2025. The fair value of stock options at the grant date are estimated using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility.

There have beenno stock options granted under the 2024 Plan. A summary of stock option activity under the Company’s 2014 Plan for the nine months ended September 30, 2026 is as follows:

The aggregate intrinsic value of options outstanding and options exercisable at September 30, 2026 is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s Common Stock for the options that had exercise prices that were lower than the $17.58 closing price of the Company’s Common Stock on September 30, 2026. The total intrinsic value of options when forfeited are determined as of the date of forfeiture. The total intrinsic value of options when expired are determined as of the date of expiration.

Participants in the 2014 Plan and the 2024 Plan may exercise their outstanding vested options, in whole or in part, by having the Company reduce the number of shares otherwise issuable by a number of shares having a fair market value equal to the exercise price of the option being exercised ("Net Exercise"), or by exchanging a number of shares owned for a period of greater than one year having a fair market value equal to the exercise price of the option being exercised ("Share Exchange").

The Company received $41,250 from the exercise of 18,333 options during the nine months ended September 30, 2026. The remaining options exercised during the nine months ended September 30, 2026 were Net Exercises, resulting in the issuance of 20,828 shares of Common Stock.

As of September 30, 2026, the estimated fair value of unamortized compensation cost related to 75,388 unvested stock option awards was approximately $8,000. Unamortized compensation cost as of September 30, 2026 is expected to be recognized over a remaining weighted-average vesting period of 0.27 years.

Restricted Stock Awards

A summary of the restricted Common Stock activity under the 2024 Plan for the nine months ended September 30, 2026 is as follows:

For the three months ended September 30, 2026 and 2025, stock-based compensation for these grants was approximately $645,000 and $398,000, respectively, which is included in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. For the nine months ended September 30, 2026 and 2025, stock-based compensation for these grants was approximately $1,912,000 and $1,148,000, respectively, which is included in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. These amounts reflect the Company’s accounting expense and do not correspond to the actual value that will be recognized by the directors, executives and employees. Unamortized compensation cost of $1,785,971 as of September 30, 2026 is expected to be recognized over a remaining weighted-average vesting period of 1.37 years.

Employee Stock Purchase Plan

On June 19, 2021, the Company’s Board of Directors adopted the Kingstone Companies, Inc. Employee Stock Purchase Plan (the “ESPP”), subject to stockholder approval. Such approval was obtained on August 10, 2021. The purpose of the ESPP is to provide eligible employees of the Company with an opportunity to use payroll deductions to purchase shares of Common Stock of the Company. The maximum number of shares of Common Stock that may be purchased under the ESPP is 750,000, subject to adjustment as provided for in the ESPP. The ESPP was effective August 10, 2021 and expires on August 10, 2031. A maximum of 5,000 shares of Common Stock may be purchased by an employee during any offering period.

The initial offering period under the ESPP was from November 1, 2021 through October 31, 2022. There was no offering pursuant to the ESPP from November 1, 2022 through December 31, 2024. Effective January 1, 2025, the Company initiated an offering period of January 1, 2025 through December 31, 2025 under the ESPP (the "2025 Offering"). Effective January 1, 2026, the Company initiated an offering period of January 1, 2026 through December 31, 2026 under the ESPP (the "2026 Offering"). For the three months ended September 30, 2026 and 2025, stock-based compensation under the 2026 Offering and 2025 Offering was approximately $10,000 and $10,000, respectively, which is included in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. For the nine months ended September 30, 2026 and 2025, stock-based compensation under the 2026 Offering and 2025 Offering was approximately $27,000 and $26,000, respectively, which is included in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income.

Warrants

In connection with the 2022 Exchange Agreement (see Note 7 – Debt – “2024 Notes”), as additional consideration, on December 15, 2022, the Company issued warrants (the "Warrants") to the 2022 exchanging note holders to purchase 969,525 shares of Common Stock at an exercise price of $1.00 per share, initially exercisable through December 30, 2025. Pursuant to the 2024 Exchange Agreement, the expiration date of the Warrants was extended to June 30, 2026 from December 30, 2025. As of December 31, 2025, all issued warrants were exercised. The fair value of the Warrants, using the Black-Scholes valuation formula, was $993,200, which was capitalized as a deferred financing cost of the 2022 Notes and the 2024 Notes. The fair value of the Warrants was amortized over the life of the Warrants, which was 36.5 months through September 12, 2024 and effective as of such date, the unamortized balance was being amortized over the extended life of the Warrants, which was 21.5 months.

Holders of the Warrants were entitled to exercise their outstanding Warrants in cash, or, in whole or in part, by having the Company reduce the number of shares otherwise issuable by a number of shares having a fair market value equal to the exercise price of the Warrants being exercised.

In accordance with ASC 815 - Derivatives and Hedging – Subsequent Measurement, the effect of a modification or an exchange shall be measured as the difference between the fair value of the modified or exchanged instrument and the fair value of that instrument immediately before it is modified or exchanged. The Company calculated the respective fair values and determined the difference was immaterial.

At-the-Market Offering

In May 2024, the Company entered into a Sales Agreement with Janney Montgomery Scott LLC (the “Sales Agent”) under which the Company initially had the ability to issue and sell shares of its Common Stock, from time to time, through the Sales Agent, pursuant to the Shelf Registration Statement, up to an aggregate offering price of approximately $16,400,000 in what is referred to as an “at-the-market” (“ATM”) program. On January 7, 2025, the Company filed a prospectus supplement providing for a going forward aggregate offering price for the ATM program of $25,000,000. During the nine months ended September 30, 2026, the Company did not sell any shares of its Common Stock under the ATM program. As of September 30, 2026, the Company had remaining capacity to sell up to an additional $15,945,937 of Common Stock under the ATM program.

Share Repurchase Program

On May 19, 2026, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to 1,000,000 shares of its outstanding Common Stock over the nexttwo years. Repurchases under the program may be made from time to time through open market purchases, privately negotiated transactions, block transactions, and transactions effected pursuant to trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The Company intends to effect repurchases in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policy. The timing and total amount of any repurchases will be determined at management’s discretion based on its evaluation of market conditions, the Company’s share price, regulatory requirements, the Company’s liquidity needs, and other factors. The program over the two year term does not obligate the Company to acquire any specific number of shares, and may be modified, suspended, or discontinued at any time without prior notice. As of September 30, 2026, the Company acquired a total of 19,446 shares under this program at a cost of $291,833, inclusive of commissions.

Note 9 –Income Taxes

The Company files a consolidated U.S. federal income tax return that includes all wholly-owned subsidiaries. State tax returns are filed on a consolidated or separate return basis depending on applicable laws. The Company records adjustments related to prior years’ taxes during the period when they are identified, generally when the tax returns are filed. The effect of these adjustments on the current and prior periods (during which the differences originated) is evaluated based upon quantitative and qualitative factors and are considered in relation to the consolidated financial statements taken as a whole for the respective periods. The Company's effective tax rates for the three months and nine months ended September 30, 2026 and 2025 are different than the federal statutory rate of 21%, due primarily to the net effect of tax-exempt municipal bond interest income, dividends received deduction and tax adjustments related to executive and equity-based compensation.

Income Taxes Paid

For the three months ended September 30, 2026 and 2025, the Company paid federal income taxes of $4,562,000 and $4,466,000, respectively, and state income taxes of $0 and $0, respectively. For the nine months ended September 30, 2026 and 2025, the Company paid federal income taxes of $6,324,000 and $5,819,000, respectively, and state income taxes of $250 and $0, respectively.

Deferred Tax Asset

Deferred tax assets and liabilities are determined using the enacted tax rates applicable to the period the temporary differences are expected to be recovered. Accordingly, the current period income tax provision can be affected by the enactment of new tax rates. The net deferred income taxes on the balance sheets reflect temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and income tax purposes, tax effected at various rates depending on whether the temporary differences are subject to federal taxes, state taxes, or both.

Significant components of the Company’s deferred tax assets and liabilities are as follows:

(1)The deferred tax assets from federal current year net operating loss ("NOL"), and state current year and prior years NOL carryovers are as follows:

(A)Kingstone generates operating losses for state purposes and has prior year NOLs available. The state NOL as of September 30, 2026 and December 31, 2025 was $55,388,972 and $52,634,646, respectively. KICO, the Company’s insurance underwriting subsidiary, is not subject to state income taxes. KICO’s state tax obligations are paid through a gross premiums tax, which is included in the condensed consolidated statements of income and comprehensive income within other underwriting expenses. Kingstone has recorded a full valuation allowance due to the uncertainty of generating enough state taxable income to utilize 100% of the available state NOLs over their remaining lives, which expire between 2027 and 2045.

(2)Deferred tax liability – Investment in KICO

On July 1, 2009, the Company completed the acquisition of 100% of the issued and outstanding common stock of KICO (formerly known as Commercial Mutual Insurance Company (“CMIC”)) pursuant to the conversion of CMIC from an advance premium cooperative to a stock property and casualty insurance company. Pursuant to the plan of conversion, the Company acquired a 100% equity interest in KICO, in consideration for the exchange of $3,750,000 principal amount of surplus notes of CMIC. In addition, the Company forgave all accrued and unpaid interest on the surplus notes as of the date of conversion. As of the date of acquisition, unpaid accrued interest on the surplus notes along with the accretion of the discount on the original purchase of the surplus notes totaled $2,921,319 (together “Untaxed Interest”). As of the date of acquisition, the deferred tax liability on the Untaxed Interest was $1,169,000. A temporary difference with an indefinite life exists when the parent has a lower carrying value of its subsidiary for income tax purposes. The deferred tax liability was reduced to $759,543 upon the reduction of federal income tax rates as of December 31, 2017. The Company is required to maintain its deferred tax liability of $759,543 related to this temporary difference until the stock of KICO is sold, or the assets of KICO are sold or KICO and the parent are merged.

In assessing the valuation of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. No valuation allowance against deferred tax assets has been established, except for NOL limitations, as the Company believes it is more likely than not the deferred tax assets will be realized based on the historical taxable income of KICO, or by offset to deferred tax liabilities.

The Company had no material unrecognized tax benefit and no adjustments to liabilities or operations were required. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the nine months ended September 30, 2026 and 2025. If any had been recognized these would have been reported in income tax expense.

Generally, taxing authorities may examine the Company’s tax returns for the three years from the date of filing. The Company’s tax returns for the years ended December 31, 2021 through December 31, 2025 remain subject to examination.

Note 10 –Earnings Per Common Share

Basic net earnings per common share is computed by dividing net income by the weighted-average number of shares of Common Stock outstanding. Diluted earnings per common share reflects, in periods in which it has a dilutive effect, the impact of shares of Common Stock issuable upon exercise of stock options and warrants as well as non-vested restricted stock awards. The computation of diluted earnings per common share excludes those options and warrants with an exercise price in excess of the average market price of the Company’s Common Stock during the periods presented. For the three months andnine months ended September 30, 2026 and 2025, there were no options or warrants with an exercise price in excess of the average market price of the Company’s Common Stock during the periods.

The computation of diluted earnings per common share excludes outstanding options, warrants and non-vested restricted stock awards in periods where the exercise of such options and warrants or vesting of such restricted stock awards would be anti-dilutive. For the three months and nine months ended September 30, 2026 and 2025, there wereno options, warrants or restricted stock awards that were anti-dilutive for the relevant periods.

The reconciliation of the weighted average number of shares of Common Stock used in the calculation of basic and diluted earnings per common share follows:

Note 11 -Commitments and Contingencies

Litigation

From time to time, the Company is involved in various legal proceedings in the ordinary course of business. For example, to the extent a claim is asserted by a third party in a lawsuit against one of the Company’s insureds covered by a particular policy, the Company may have a duty to defend the insured party against the claim. These claims may relate to bodily injury, property damage or other compensable injuries as set forth in the policy. Such proceedings are considered in estimating the liability for loss and LAE expenses.

Office Lease

The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease.

On February 10, 2025, KICO entered into a lease agreement for an office facility located in Kingston, New York under an operating lease. The lease commenced on March 1, 2025 (the "Commencement Date") and will expire on March 31, 2030. KICO has the option to renew the lease for an additional term offive years. KICO may terminate the lease anytime following the third anniversary of the Commencement Date if its insurance business is sold or substantially all of the Company's assets are sold. Base rent over the term of the lease is $269,777 plus a proportionate share of taxes, common area maintenance costs and insurance.

Additional information regarding the Company’s office operating leases is as follows:

Right-of-use assets, included in other assets, were $129,338 and $136,209 as of September 30, 2026 and December 31, 2025, respectively. Lease liabilities, included in accounts payable, accrued expenses and other liabilities, were $129,338 and $136,209 as of September 30, 2026 and December 31, 2025, respectively.

Rent expense for the three months ended September 30, 2026 and 2025 amounted to $13,391 and $13,391, respectively, and is included in the accompanying condensed consolidated statements of income and comprehensive income within other underwriting expenses. Rent expense for the nine months ended September 30, 2026 and 2025 amounted to $40,174 and $31,246, respectively, and is included in the accompanying condensed consolidated statements of income and comprehensive income within other underwriting expenses.

Employment Agreements

Meryl Golden, President and Chief Executive Officer

Employment Agreement effective as of January 1, 2025

On April 15, 2024, the Company and Ms. Golden entered into a third amended and restated employment agreement (the “Third Amended Golden Employment Agreement”). The Third Amended Golden Employment Agreement was effective as of January 1, 2025 and extends the expiration date of Ms. Golden's previous employment agreement (the "Second Amended Golden Employment Agreement") from December 31, 2024 to January 10, 2027. Pursuant to the Third Amended Golden Employment Agreement, Ms. Golden is entitled to receive an annual base salary of $550,000 (increased from $500,000 previously in effect) and an annual bonus equal to 3% of the Company’s consolidated income from operations before taxes, exclusive of the Company’s consolidated net investment income (loss), net unrealized gains (losses) on equity securities and net realized gains (losses) on investments, up to a maximum of 1.25 times her base annual salary (the same as previously in effect). Pursuant to the Third Amended Golden Employment Agreement (and as was provided for in the Second Amended Golden Employment Agreement), in the event that Ms. Golden’s employment is terminated by the Company without cause or she resigns for good reason (each as defined in the Third Amended Golden Employment Agreement), Ms. Golden would be entitled to receive her base salary and the 3% bonus for the remainder of the term. Ms. Golden would be entitled, under certain circumstances, to a payment equal to 1.5 times her then annual salary and her accrued bonus in the event of the termination of her employment following a change of control of the Company (also as is provided for in the Second Amended Golden Employment Agreement). Pursuant to the Third Amended Golden Employment Agreement, Ms. Golden received during each of January 2025 and January 2026 a grant of 40,000 shares of restricted stock. The 2025 grant vested with respect to one-half of the award on the first anniversary of the grant date and will become vested with respect to one-half of the award on December 31, 2026. The 2026 grant will become vested on the first anniversary of the grant date.

Employment Agreement effective as of January 11, 2027

On April 17, 2026, the Company and Ms. Golden entered into a Fourth Amended and Restated Employment Agreement (the “Fourth Amended Golden Employment Agreement”). The Fourth Amended Golden Employment Agreement is effective as of January 11, 2027 and expires on January 10, 2029. The Fourth Amended Golden Employment Agreement extends the expiration date of the Third Amended Golden Employment Agreement from January 10, 2027 to January 10, 2029.

Pursuant to the Fourth Amended Golden Employment Agreement, Ms. Golden is entitled to receive an annual base salary of $550,000 (the same as currently in effect) and an annual bonus equal to 3% of the Company’s consolidated income from operations before taxes, exclusive of the Company’s consolidated net investment income (loss), net unrealized gains (losses) on equity securities and net realized gains (losses) on investments, up to a maximum of 1.25 times her base annual salary (the same as currently in effect). Pursuant to the Fourth Amended Golden Employment Agreement (and as provided for in the Third Amended Golden Employment Agreement), in the event that Ms. Golden’s employment is terminated by the Company without cause or she resigns for good reason (each as defined in the Fourth Amended Golden Employment Agreement), Ms. Golden would be entitled to receive her base salary and the 3% bonus for the remainder of the term. Ms. Golden would be entitled, under certain circumstances, to a payment equal to 1.5 times her then annual salary and her accrued 3% bonus in the event of the termination of her employment following a change of control of the Company (also as is provided for in the Third Amended Golden Employment Agreement). Pursuant to the Fourth Amended Golden Employment Agreement, Ms. Golden will be entitled to receive, under certain circumstances, a grant, during each of January 2027 and January 2028, of 40,000 shares of restricted stock. The 2027 grant will become vested with respect to one-half of the award on each of the first and second anniversaries of the grant date. The 2028 grant will become vested on the first anniversary of the grant date. The above grants are generally consistent with the grants provided for in the Third Amended Golden Employment Agreement. In the event that the Company is precluded from making a grant to Ms. Golden in either 2027 or 2028, she would instead be entitled to a cash bonus for such year equal to 40,000 multiplied by the Common Stock market price at the time.

Randy Patten, Chief Financial Officer, Vice President and Treasurer

On July 23, 2025, the Company and Randy Patten entered into an employment agreement (the “Patten Employment Agreement”) pursuant to which Mr. Patten serves as the Company’s Chief Financial Officer, Vice President and Treasurer. Mr. Patten also serves as KICO’s Chief Financial Officer, Vice President and Treasurer. The Patten Employment Agreement was effective as of August 25, 2025 (the "Effective Date") and will expire on August 25, 2028 (the "Expiration Date"). The term of the Patten Employment Agreement shall automatically be extended for one year periods beyond the Expiration Date unless either party provides written notice to the other party, no later than four months preceding the Expiration Date (or the end of the term, if extended), of its or his desire that the term not be extended.

Pursuant to the Patten Employment Agreement, Mr. Patten is entitled to receive an annual base salary of $400,000 and shall participate in the Company's Bonus Plan, including with respect to the senior leadership team ("SLT") RSA bonus, each as described in Note 12 – Employee Benefit Plans, Bonus Plans, Employee Bonus Plan. In accordance with the Bonus Plan, Mr. Patten's cash bonus target is 25% of his base salary, and in no event, could the cash bonus for the calendar year ended December 31, 2025 be less than $35,000.

On September 12, 2025, the Company paid to Mr. Patten a sign-on bonus of $200,000 (the “Sign-on Bonus”). In the event that, prior to the first anniversary of the Effective Date, Mr. Patten's employment with the Company had been terminated by the Company for cause (as defined in the Patten Employment Agreement) or by Mr. Patten without good reason (as defined in the Patten Employment Agreement), Mr. Patten would have been obligated to promptly repay the Sign-on Bonus to the Company. At its option, the Company would have had the right to offset such Sign-on Bonus repayment obligation against any and all amounts payable to Mr. Patten.

Pursuant to the Patten Employment Agreement, Mr. Patten was entitled to receive a restricted stock grant of a number of shares of Common Stock determined by dividing $600,000 by the fair market value of the Company’s Common Stock on the date of grant. On the Effective Date, Mr. Patten was granted 43,290 shares of restricted stock pursuant to this provision. Such stock grant vested with respect to 25% of the award on the first anniversary of the grant date and will become vested with respect to 25% of the award on the second anniversary of the grant date and 50% of the award on the third anniversary of the grant date.

Note 12 –Employee Benefit Plans

Bonus Plans

Employee Bonus Plan

For the three months ended September 30, 2026 and 2025, the Company accrued approximately $408,518 and $1,414,952, respectively, of cash payments related to an employee bonus plan (the "Bonus Plan"), of which $88,526 and $322,609, respectively, is allocated and recorded in loss and LAE, $299,748 and $1,092,343, respectively, is recorded in other underwriting expenses, and $20,244 and $0, respectively, is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. For the nine months ended September 30, 2026 and 2025, the Company accrued approximately $1,225,556 and $2,395,343, respectively, of cash payments related to the Bonus Plan, of which $274,127 and $546,138, respectively, is allocated and recorded in loss and LAE, $928,185 and $1,849,205, respectively, is recorded in other underwriting expenses, and $23,244 and $0, respectively, is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. In addition to the cash payments, the Bonus Plan provides for a restricted stock award ("RSA") to the Company's

SLT and other members of management in an amount up to their cash payments if certain performance metrics have been met. The performance metrics for the nine months ended September 30, 2026 were not met, and, accordingly, no stock-based compensation liability has been accrued for the three months and nine months ended September 30, 2026 for the SLT RSA bonus. The performance metrics for the nine months ended September 30, 2025 were met, and, accordingly, $149,862 and$197,868, respectively, of stock-based compensation liability has been accrued for the three months and nine months ended September 30, 2025 for the SLT RSA bonus and is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income.

Executive Bonus Plan

For the three months ended September 30, 2026 and 2025, the Company accrued approximately $497,000 and $254,000, respectively, for a bonus pursuant to the Third Amended Golden Employment Agreement ("Executive Bonus") of which $447,000 and $229,000, respectively, is recorded in other underwriting expenses, and $50,000 and $25,000, respectively, is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. For the nine months ended September 30, 2026 and 2025, the Company accrued approximately $688,000 and $625,000, respectively, for the Executive Bonus of which $619,000 and $563,000, respectively, is recorded in other underwriting expenses, and $69,000 and $62,000, respectively, is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income.

401(k) Plan

The Company maintains a salary reduction plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for its qualified employees. The Company matches 100% of each participant’s contribution up to 4% of the participant’s eligible contribution. The Company incurred approximately $98,000 and $86,000, respectively, of expense for the three months ended September 30, 2026 and 2025, related to the 401(k) Plan, which is recorded in other underwriting expenses on the accompanying condensed consolidated statements of income and comprehensive income. The Company incurred approximately $325,000 and $271,000, respectively, of expense for the nine months ended September 30, 2026 and 2025, related to the 401(k) Plan, which is recorded in other underwriting expenses on the accompanying condensed consolidated statements of income and comprehensive income.

Note 13 -Segment Information

The Company’s chief operating decision maker (“CODM”) is its President and Chief Executive Officer. The CODM uses consolidated net income, as reported in the Company’s unaudited interim condensed consolidated statements of income and comprehensive income, as the reported measure of segment profit or loss. The CODM uses this measure to assess the Company’s overall financial performance and make operating and resource allocation decisions for its property and casualty insurance business, including developing the annual budget and forecast, allocating resources in support of the Company’s overall operating objectives, and determining employee compensation.

The significant segment expense categories and amounts regularly provided to the CODM and included in consolidated net income are the same as those separately presented in the accompanying unaudited interim condensed consolidated statements of income and comprehensive income. No additional significant segment expense categories or amounts at a more disaggregated level are regularly provided to the CODM or are easily computable from the information regularly provided to the CODM. Asset information is not regularly provided to the CODM at a level or in categories different from those presented in the Company’s condensed consolidated balance sheets.

Note 14 -Sale of Real Estate

On February 5, 2025, a subsidiary of the Company entered into a contract of sale with Ulster County, New York (the “County”) for the sale to the County of the Company’s headquarters building in Kingston, New York, along with an adjacent mixed-use property (collectively, the “Property”). The purchase price for the Property was $3,600,000. The closing of the sale was on March 19, 2025.

Note 15 –Subsequent Events

Dividend Declared

On October 21, 2026, the Company’s Board of Directors approved a quarterly dividend of $0.06 per share payable in cash on November 25, 2026 to stockholders of record as of the close of business on November 11, 2026.